Is China's military the biggest winner from the boom in trade with U.S. technology firms?

The launch of Loral's Intelsat 708 communications satellite in Sichuan province in February 1996 was a fiery disaster. The Chinese-made Long March rocket that was supposed to propel the American satellite into space crashed into a hillside 22 sec. after lift-off and exploded, raining flaming rocket fuel and red-hot shards of the 3-ton satellite on a nearby village. China initially said six villagers choked or burned to death, and later upped the number to 56, but U.S. estimates put the fatalities closer to 100.

Loral's ill-fated launch may also have caused collateral damage of a different kind. In the wake of...